Our active cooperation with commercial banks is particularly important in the case of higher-volume export transactions.
At a time when the global economy is facing many challenges and exports are an important part of the economy, countries are realising the importance of their export credit agencies. The capitalisation of such an agency tends to be one of the shareholder’s strategic moves that enables it to adapt to changing international trade conditions and thus to support more intensively the expansion of domestic firms into foreign markets.
Eximbank’s historic capital strengthening is good news for exporters. It will enable us to expand our business activities this year and in the period ahead. We will be able to support more significant projects and thus make a significant contribution to increasing the export potential not only of large but also of small and medium-sized enterprises, including to markets outside the EU, such as Central Asia, East Africa or the Western Balkans.
At the same time, the increase in capital will strengthen our complementary function vis-à-vis the commercial banking sector. Our active cooperation with commercial banks is particularly important for higher volume export transactions. The capital injection will allow us to support more export business, in larger volumes and while maintaining our existing limits. It will also give us the opportunity to support deals where commercial banks have certain constraints, for example in the defence or energy sectors. At the same time, it is also a huge opportunity for commercial banks, which can increase the volume of financing for their clients exporting to foreign markets. I will mention in particular political risk insurance, which is used by commercial banks in this country to protect their risk. Meanwhile, a capital-strengthened export credit agency also has the potential to be one of the state’s tools for attracting foreign investors, who can be helped to find financing for their investment or export activities on commercial terms.
Looking around the surrounding countries, Eximbank is one of the smaller export credit agencies. Germany, the Czech Republic and Poland, for example, have understood that they form an important link in the export policy of the state. We, too, must therefore move from the quantities and volumes of trade that were sufficient to promote exports in the 1990s to the present day and catch up with what has long been a reality in our neighbours. I believe that in a country where exports account for around 90 per cent of its GDP, the capital strengthening of the Export Credit Agency will bring the opportunity to exploit the potential that the future holds, and also the opportunity to strengthen Slovakia’s economic stability through increased exports.
Source photo from the interview: Peter Majer
Source of portrait: Eximbanka (Silvia Slafkovská)
CEO of Eximbanka Ing. Rastislav Podhorec, MBA